Excluding special items, EPS from continuing operations was $0.70, including income from the St. Regis Bal Harbour residential project. Including
special items, EPS from continuing operations was $0.66.



Adjusted EBITDA was $323 million, which included $35 million of EBITDA from the St. Regis Bal Harbour residential project, up 23.3% compared to 2011.



Excluding special items, income from continuing operations was $138 million, including income from the St. Regis Bal Harbour residential project.
Including special items, income from continuing operations was $129 million.

Earnings from Starwoods vacation ownership and residential business increased approximately $41 million compared to 2011, including $35 million
of earnings from the St. Regis Bal Harbour residential project.



During the quarter, the Company signed 34 hotel management and franchise contracts, representing approximately 8,300 rooms, and opened 14 hotels and
resorts with approximately 2,700 rooms.

Second Quarter 2012 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (Starwood or the Company) today reported EPS from continuing operations for the second quarter of 2012 of $0.66 compared
to $0.77 in the second quarter of 2011. Excluding special items, EPS from continuing operations was $0.70 for the second quarter of 2012, including income from The St. Regis Bal Harbour Resort residential project (Bal Harbour), compared
to $0.50 in the second quarter of 2011. Special items in the second quarter of 2012, which totaled a charge of $9 million (after-tax), primarily related to costs associated with the early extinguishment of debt. Special items in the second quarter
of 2011, which totaled a benefit of $53 million (after-tax), primarily related to a tax benefit associated with the sale of two wholly-owned hotels.Excluding special items, the effective income tax rate in the second quarter of 2012 was
31.5%, including the tax effects associated with income from Bal Harbour, compared to 25.4% in the second quarter of 2011.

Income
from continuing operations was $129 million in the second quarter of 2012, compared to $150 million in the second quarter of 2011. Excluding special items, income from continuing operations was $138 million in the second quarter of 2012, including
income from Bal Harbour, compared to $97 million in the second quarter of 2011.

Net income was $122 million and $0.62 per share in the second
quarter of 2012, compared to $131 million and $0.68 per share in the second quarter of 2011.

Frits van Paasschen, CEO, said, We kept up
our momentum in the second quarter, despite a choppy global economy. Our REVPAR grew 6.9%, with occupancy over a healthy 71%. Despite the uncertain global environment, we expect the trends we saw in our business for the past quarter to
continue through the second half of the year.

Our approach to an uncertain global marketplace is to be both smart and bold. What
we mean by smart is having a business model, balance sheet, and cost structure that can weather economic turbulence. At the same time, we are being bold in our efforts to grow our footprint in the right way, and to invest in building
guest loyalty to gain more than our fair share of business.

Six Months Ended June 30, 2012 Earnings Summary

Income from continuing operations was $258 million in the six months ended June 30, 2012 compared to $179 million in the same
period in 2011. Excluding special items, income from continuing operations was $262 million in the six months ended June 30, 2012, including income from Bal Harbour, compared to $155 million in the same period in 2011.

Net income was $250 million and $1.27 per share in the six months ended June 30, 2012 compared to $159 million and $0.82 per share in the same
period in 2011.

Adjusted EBITDA was $620 million in the six months ended June 30, 2012 compared to $470 million in the same period in
2011.

Management fees, franchise fees and other income were $222 million, up $21 million, or 10.4% compared to
the second quarter of 2011. Management fees increased 13.5% to $126 million and franchise fees increased 6.1% to $52 million.Year-over-year base management fee and franchise fee comparisons were impacted by the conversion of some franchise
agreements to management contracts in Germany.

3

Development

During the second quarter of 2012, the Company signed 34 hotel management and franchise contracts, representing approximately 8,300 rooms, of which 30 are new builds and four are conversions from other
brands. At June 30, 2012, the Company had approximately 365 hotels in the active pipeline representing approximately 95,000 rooms.

During the second quarter of 2012, 14 new hotels and resorts (representing approximately 2,700 rooms) entered the system, including The St. Regis Doha
(Qatar, 336 rooms), The Westin Xiamen (China, 304 rooms), The Sheraton Madrid Mirasierra Hotel & Spa (Spain, 182 rooms), Four Points by Sheraton Perth (Australia, 277 rooms), and Aloft, Ontario (Canada, 131 rooms). Five properties
(representing approximately 1,000 rooms) were removed from the system during the quarter.

Revenues at Starwood branded Same-Store Owned Hotels in North America decreased 0.7% while costs and expenses decreased 1.7% when compared to
2011. Margins at these hotels increased approximately 70 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $453 million, compared to $478 million in 2011. Expenses at
owned, leased and consolidated joint venture hotels were $360 million compared to $381 million in 2011. Second quarter results were negatively impacted by five asset sales that took place since the second quarter of 2011.

Vacation Ownership

Total vacation
ownership revenues increased 2.8% to $148 million in the second quarter of 2012 when compared to 2011, primarily due to the timing and recognition of deferred revenues and favorable trends with respect to default rates on notes receivable.
Originated contract sales of vacation ownership intervals and numbers of contracts decreased 5.0% and 1.8%, respectively, primarily due to lower closing efficiency partially offset by increased tour flow. The average price per vacation ownership
unit sold decreased 2.6% to approximately $14,400, driven by inventory mix.

4

Residential

The Companys residential revenues were $168 million compared to $2 million in 2011. The Company realized residential revenues from Bal Harbour during the second quarter of 2012 of $167 million and
generated EBITDA of $35 million. During the second quarter of 2012, the Company closed sales of 45 units and realized incremental cash proceeds of $148 million associated with these units. From project inception through June 30, 2012, the
Company has closed contracts on approximately 60% of the total residential units.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses decreased 2.3% to $86 million compared to $88 million in 2011, primarily due to
changes in foreign exchange rates. The Company continues to target a 4% to 5% increase for the full year.

Capital

Gross capital spending during the quarter included approximately $22 million of maintenance capital and $70 million of development capital.

Share Repurchase

In the second
quarter of 2012 and through July 25, the Company repurchased 2.84 million shares at a total cost of approximately $140.0 million. As of July 25 2012, approximately $110.0 million remained available under the Companys share
repurchase authorization.

Balance Sheet

At June 30, 2012, the Company had gross debt of $1.652 billion, excluding $449 million of debt associated with securitized vacation ownership notes receivable. Additionally, the Company had cash and
cash equivalents of $410 million (including $140 million of restricted cash), and net debt of $1.242 billion, compared to net debt of $1.383 billion as of March 31, 2012. Net debt at June 30, 2012, including debt and restricted cash ($18
million) associated with securitized vacation ownership notes receivables, was $1.673 billion.

At June 30, 2012, debt was approximately
88% fixed rate and 12% floating rate and its weighted average maturity was 4.4 years with a weighted average interest rate of 7.05%, excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the
domestic and international revolving credit facility of approximately $1.912 billion.

During the second quarter of 2012, the Company redeemed
all $495 million of its 6.25% Senior Notes due February 2013. Redemption premiums and other costs associated with the redemption were approximately $15 million. Additionally, the Company prepaid a loan secured by one owned hotel of approximately $52
million.

5

Outlook

For the Full Year 2012:



Including Bal Harbour, which is expected to contribute at least $120 million of EBITDA, adjusted EBITDA is expected to be approximately $1.190 billion
to $1.210 billion.



Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $1.070 billion to $1.090 billion, assuming:

Management fees, franchise fees and other income increase approximately 9% to 11%.



Earnings from the Companys vacation ownership and residential business of approximately $150 million to $155 million.



Selling, general and administrative expenses increase 4% to 5%.



Full year outlook is negatively impacted by exchange rate shifts and weaker Owned hotel trends in Canada and Argentina



Depreciation and amortization is expected to be approximately $285 million.



Interest expense is expected to be approximately $192 million, excluding the $15 million of redemption premiums and other costs associated with the
Senior Notes redemption in the second quarter of 2012.



Including Bal Harbour, full year effective tax rate is expected to be approximately 31%, and cash taxes are expected to be approximately $100 million.



Including Bal Harbour, EPS before special items is expected to be approximately $2.49 to $2.56.



Full year capital expenditures (excluding vacation ownership and residential inventory) is expected to be approximately $200 million for maintenance,
renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $375 million.



Vacation ownership (excluding Bal Harbour) is expected to generate approximately $150 million in positive cash flow. Bal Harbour is expected to
generate at least $350 million in net cash flow.

6

For the three months ended September 30, 2012:



Including Bal Harbour, which is expected to contribute at least $5 million of EBITDA, adjusted EBITDA is expected to be approximately $260 million to
$270 million.



Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $255 million to $265 million, assuming:

Management fees, franchise fees and other income increase approximately 9% to 11%.



Earnings from the Companys vacation ownership and residential business are flat to up $5 million year over year.



Third quarter outlook is negatively impacted by approximately $5 million due to exchange rate shifts and weaker Owned hotel trends in Canada and
Argentina.



Depreciation and amortization is expected to be approximately $71 million.



Interest expense is expected to be approximately $45 million.



Including Bal Harbour, income from continuing operations is expected to be approximately $99 million to $106 million, reflecting an effective tax rate
of approximately 31%.



Including Bal Harbour, EPS is expected to be approximately $0.50 to $0.54.

7

Special Items

The Companys special items netted to a charge of $16 million ($9 million after-tax) in the second quarter of 2012 compared to a benefit of $2 million ($53 million after-tax) in the same period of
2011.

The following represents a reconciliation of income from continuing operations before special items to income from continuing
operations including special items (in millions, except per share data):

Three Months
EndedJune 30,

Six Months EndedJune
30,

2012

2011

2012

2011

$

138

$

97

Income from continuing operations before special items

$

262

$

155

$

0.70

$

0.50

EPS before special items

$

1.33

$

0.80

Special Items





Restructuring, goodwill impairment, and other special (charges) credits, net (a)

11



(1

)

2

Gain (loss) on asset dispositions and impairments, net (b)

(8

)

(31

)

(15

)



Debt extinguishment (c)

(15

)



(16

)

2

Total special items  pre-tax

(12

)

(31

)

7



Income tax benefit (expense) for special items
(d)

8





51

Income tax benefit (expense) associated with dispositions (e)



55

(9

)

53

Total special items  after-tax

(4

)

24

$

129

$

150

Income from continuing operations

$

258

$

179

$

0.66

$

0.77

EPS including special items

$

1.31

$

0.92

(a)

During the six months ended June 30, 2012, the Company recorded a favorable adjustment of $11 million to reverse a portion of a litigation reserve.

(b)

During the three months ended June 30, 2012, the net loss primarily relates to asset disposals. The six months ended June 30, 2012 includes the net loss
primarily related to the sale of one wholly-owned hotel.

During the three months ended June 30, 2011, the
net gain primarily relates to the sale of non-core assets. During the six months ended June 30, 2011, the net loss primarily related to an impairment of a minority investment in a joint venture hotel located in Japan.

(c)

During the three and six months ended June 30, 2012, the net charges are associated with the redemption of approximately $495 million of senior notes.

(d)

During the three and six months ended June 30, 2012, the benefit primarily represents income tax benefits on special items at the statutory rate.

(e)

During the three and six months ended June 30, 2011, the benefit relates primarily to the sale of two wholly-owned hotels with high tax bases as a result of a
previous transaction.

The Company has included the above supplemental information concerning special items to assist investors
in analyzing Starwoods financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means
to emphasize the results of core on-going operations.

8

Starwood will be conducting a conference call to discuss the second quarter financial results at 10:30 a.m. EDT today
at (866) 921-0636 with conference ID 86194681. The conference call will be available through a simultaneous webcast in the News & Events section of the Companys website at
http://www.starwoodhotels.com/corporate/investor_relations.html. A replay of the conference call will also be available from 1:30 p.m. EDT today through Thursday, August 2, 2012 at 12:00 midnight EDT by telephone at (855) 859-2056
with conference ID 86194681. A webcast replay will be active beginning at 1:30 p.m. EDT today and will run for one year.

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to
Starwoods common stockholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwoods common stockholders (i.e. excluding amounts attributable to noncontrolling
interests). All references to net capital expenditures mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and
amortization. The Company believes that EBITDA is a useful measure of the Companys operating performance due to the significance of the Companys long-lived assets and level of indebtedness. EBITDA is a commonly used measure of
performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Companys operating performance. It also facilitates comparisons between the Company and its competitors. The
Companys management has historically adjusted EBITDA (i.e., Adjusted EBITDA) when evaluating operating performance for the Company, as well as for individual properties or groups of properties, because the Company believes that the
inclusion or exclusion of certain recurring and non-recurring items, such as restructuring, goodwill impairment and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure
of core operating results and as a means to evaluate comparative results. The Companys management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. The
Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past,
present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be
considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Companys calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies
and, therefore, comparability may be limited.

All references to Same-Store Owned Hotels reflect the Companys owned, leased and
consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed
due to seasonality or natural disasters). References to Company-Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Companys owned, leased and managed hotels. References to Systemwide metrics (e.g. REVPAR) reflect metrics for the
Companys owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to revenues in constant dollars represent revenues, excluding the impact of the movement of foreign exchange rates. The Company calculates
revenues in constant dollars by calculating revenues for the current year using the prior years exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact
of movements in foreign exchange rates.

9

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for
percentage of completion accounting methodology. All references to earnings from vacation ownership and residential represents operating income before depreciation expense. All references to management and franchise revenues represent base and
incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,112 properties in nearly 100 countries and 154,000 employees at its owned and
managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®,
Sheraton®, Four Points® by Sheraton, Aloft®, and
ElementSM. The Company boasts one of the industrys
leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of
world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visit www.starwoodhotels.com or
contact Investor Relations at (203) 351-3500.

Note: This press release contains forward-looking statements within the meaning of federal
securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the
forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the
condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation
ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical
conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers fears of exposure to contagious diseases, risk associated with the level of our
indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and
Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use
approvals for the development of vacation ownership resorts. There can also be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some
of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be
significantly lower than the number of future units indicated. There can also be no assurance that agreements will be entered into for the hotels in the Companys pipeline and, if entered into, the timing of any agreement and the opening of the
related hotel. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We
undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

10

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Unaudited Consolidated Statements of Income

(In millions, except per share data)

Three Months
EndedJune 30,

Six Months
EndedJune 30,

2012

2011

%Variance

2012

2011

%Variance

Revenues

$

453

$

478

(5.2

)

Owned, leased and consolidated joint venture hotels

$

855

$

888

(3.7

)

316

146

n/m

Vacation ownership and residential sales and services

830

299

n/m

222

201

10.4

Management fees, franchise fees and other income

423

378

11.9

627

601

4.3

Other revenues from managed and franchised properties (a)

1,225

1,156

6.0

1,618

1,426

13.5

3,333

2,721

22.5

Costs and Expenses

360

381

5.5

Owned, leased and consolidated joint venture hotels

709

742

4.4

241

112

n/m

Vacation ownership and residential

634

223

n/m

86

88

2.3

Selling, general, administrative and other

182

168

(8.3

)







Restructuring, goodwill impairment and other special charges (credits), net

Income from continuing operations before taxes and noncontrolling interests

366

171

n/m

(56

)

16

n/m

Income tax benefit (expense)

(108

)

6

n/m

129

150

(14.0

)

Income (loss) from continuing operations

258

177

45.8

Discontinued Operations:

(7

)

(19

)

63.2

Gain (loss) on dispositions, net of tax

(8

)

(20

)

(60.0

)

122

131

(6.9

)

Net income (loss)

250

157

59.2







Net loss (income) attributable to noncontrolling interests



2

(100.0

)

$

122

$

131

(6.9

)

Net income (loss) attributable to Starwood

$

250

$

159

57.2

Earnings (Losses) Per Share  Basic

$

0.67

$

0.79

(15.2

)

Continuing operations

$

1.34

$

0.95

41.1

(0.04

)

(0.10

)

(60.0

)

Discontinued operations

(0.04

)

(0.11

)

(63.6

)

$

0.63

$

0.69

(8.7

)

Net income (loss)

$

1.30

$

0.84

54.8

Earnings (Losses) Per Share  Diluted

$

0.66

$

0.77

(14.3

)

Continuing operations

$

1.31

$

0.92

42.4

(0.04

)

(0.09

)

(55.6

)

Discontinued operations

(0.04

)

(0.10

)

(60.0

)

$

0.62

$

0.68

(8.8

)

Net income (loss)

$

1.27

$

0.82

54.9

Amounts attributable to Starwoods Common Stockholders

$

129

$

150

(14.0

)

Continuing operations

$

258

$

179

44.1

(7

)

(19

)

(63.2

)

Discontinued operations

(8

)

(20

)

(60.0

)

$

122

$

131

(6.9

)

Net income (loss)

$

250

$

159

(57.2

)

195

189

Weighted average number of shares

193

188

198

195

Weighted average number of shares assuming dilution

197

195

(a)

The Company includes in revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in
costs and expenses these reimbursed costs. These costs relate primarily to payroll costs at managed properties where the Company is the employer.

n/m

= not meaningful

11

STARWOOD HOTELS &
RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)

June 30,2012

December 31,2011

(unaudited

)

Assets

Current assets:

Cash and cash equivalents

$

270

$

454

Restricted cash

155

232

Accounts receivable, net of allowance for doubtful accounts of $48 and $46

Includes restricted cash of $3 million and $2 million at June 30, 2012 and December 31, 2011, respectively.

(b)

Excludes Starwoods share of unconsolidated joint venture debt aggregating approximately $418 million and $432 million at June 30, 2012 and December 31,
2011, respectively.

12

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations  Historical Data

(In millions)

Three Months
EndedJune 30,

Six Months
EndedJune 30,

2012

2011

%Variance

2012

2011

%Variance

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

$122

$

131

(6.9

)

Net income (loss)

$

250

$

159

57.2

67

54

24.1

Interest expense (a)

116

113

2.7

54

(15

)

n/m

Income tax (benefit) expense (b)

107

(4

)

n/m

63

67

(6.0

)

Depreciation (c)

127

135

(5.9

)

7

9

(22.2

)

Amortization (d)

14

18

(22.2

)

313

246

27.2

EBITDA

614

421

45.8

1

(2

)

n/m

(Gain) loss on asset dispositions and impairments, net

8

31

(74.2

)

9

18

(50.0

)

Discontinued operations (gain) loss on dispositions

9

18

(50.0

)







Restructuring, goodwill impairment and other special charges (credits), net

(11

)



n/m

$323

$

262

23.3

Adjusted EBITDA

$

620

$

470

31.9

(a)

Includes $5 million and $2 million of Starwoods share of interest expense of unconsolidated joint ventures for the three months ended June 30, 2012 and 2011,
respectively, and $5 million and $6 million for the six months ended June 30, 2012 and 2011, respectively.

(b)

Includes $(2) million and $1 million of tax expense (benefit) recorded in discontinued operations for the three months ended June 30, 2012 and 2011, respectively,
and $(1) million and $2 million for the six months ended June 30, 2012 and 2011, respectively.

(c)

Includes $7 million of Starwoods share of depreciation expense of unconsolidated joint ventures for each of the three months ended June 30, 2012 and 2011,
respectively, and $14 million and $15 million for the six months ended June 30, 2012 and 2011, respectively.

(d)

Includes $1 million and $2 million of Starwoods share of amortization expense of unconsolidated joint ventures for the three months ended June 30, 2012 and
2011, respectively, and $2 million and $3 million for the six months ended June 30, 2012 and 2011, respectively.

Same-Store Owned Hotel results exclude five hotels sold and 11 hotels without comparable results for the three months ended June 30, 2012 and five hotels sold and
12 hotels without comparable results for the six months ended June 30, 2012.

n/m = not meaningful

18

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide(1) StatisticsSame Store

For the Three Months Ended June 30,

UNAUDITED

SystemwideWorldwide

SystemwideNorth America

SystemwideInternational

2012

2011

Variance

2012

2011

Variance

2012

2011

Variance

TOTAL HOTELS

REVPAR ($)

121.82

116.86

4.2

%

123.66

115.80

6.8

%

119.37

118.28

0.9

%

ADR ($)

170.41

169.47

0.6

%

163.32

157.28

3.8

%

181.27

188.52

(3.8

%)

Occupancy (%)

71.5

%

69.0

%

2.5

75.7

%

73.6

%

2.1

65.8

%

62.7

%

3.1

SHERATON

REVPAR ($)

101.37

97.11

4.4

%

103.58

97.53

6.2

%

98.61

96.57

2.1

%

ADR ($)

145.48

144.13

0.9

%

138.79

134.97

2.8

%

155.29

157.60

(1.5

%)

Occupancy (%)

69.7

%

67.4

%

2.3

74.6

%

72.3

%

2.3

63.5

%

61.3

%

2.2

WESTIN

REVPAR ($)

138.06

131.22

5.2

%

135.42

127.70

6.0

%

144.81

140.18

3.3

%

ADR ($)

184.38

180.64

2.1

%

176.62

169.28

4.3

%

205.98

213.86

(3.7

%)

Occupancy (%)

74.9

%

72.6

%

2.3

76.7

%

75.4

%

1.3

70.3

%

65.5

%

4.8

ST. REGIS/LUXURY COLLECTION

REVPAR ($)

196.01

197.04

(0.5

%)

233.40

207.93

12.2

%

175.92

191.15

(8.0

%)

ADR ($)

301.86

307.52

(1.8

%)

314.11

292.84

7.3

%

293.69

316.87

(7.3

%)

Occupancy (%)

64.9

%

64.1

%

0.8

74.3

%

71.0

%

3.3

59.9

%

60.3

%

(0.4

)

LE MERIDIEN

REVPAR ($)

135.66

134.55

0.8

%

226.93

216.22

5.0

%

125.63

125.55

0.1

%

ADR ($)

188.11

199.45

(5.7

%)

259.99

246.23

5.6

%

178.32

192.52

(7.4

%)

Occupancy (%)

72.1

%

67.5

%

4.6

87.3

%

87.8

%

(0.5

)

70.5

%

65.2

%

5.3

W

REVPAR ($)

225.40

210.02

7.3

%

214.87

203.07

5.8

%

254.47

229.22

11.0

%

ADR ($)

282.33

273.36

3.3

%

264.98

255.69

3.6

%

333.15

329.06

1.2

%

Occupancy (%)

79.8

%

76.8

%

3.0

81.1

%

79.4

%

1.7

76.4

%

69.7

%

6.7

FOUR POINTS

REVPAR ($)

81.38

77.30

5.3

%

83.30

77.44

7.6

%

78.45

77.08

1.8

%

ADR ($)

115.68

114.14

1.3

%

113.24

109.16

3.7

%

119.88

122.88

(2.4

%)

Occupancy (%)

70.4

%

67.7

%

2.7

73.6

%

70.9

%

2.7

65.4

%

62.7

%

2.7

ALOFT

REVPAR ($)

77.24

71.03

8.7

%

81.71

74.75

9.3

%

ADR ($)

105.15

103.89

1.2

%

108.71

104.54

4.0

%

Occupancy (%)

73.5

%

68.4

%

5.1

75.2

%

71.5

%

3.7

(1)

Includes same store owned, leased, managed, and franchised hotels

19

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results - Same Store

For the Three Months Ended June 30,

UNAUDITED

Systemwide (1)

Company-Operated
(2)

2012

2011

Variance

2012

2011

Variance

TOTAL WORLDWIDE

REVPAR ($)

121.82

116.86

4.2

%

136.21

131.11

3.9

%

ADR ($)

170.41

169.47

0.6

%

192.00

191.60

0.2

%

Occupancy (%)

71.5

%

69.0

%

2.5

70.9

%

68.4

%

2.5

NORTH AMERICA

REVPAR ($)

123.66

115.80

6.8

%

152.50

143.57

6.2

%

ADR ($)

163.32

157.28

3.8

%

197.39

189.90

3.9

%

Occupancy (%)

75.7

%

73.6

%

2.1

77.3

%

75.6

%

1.7

EUROPE

REVPAR ($)

157.54

171.20

(8.0

%)

170.56

183.76

(7.2

%)

ADR ($)

225.89

243.00

(7.0

%)

240.02

256.27

(6.3

%)

Occupancy (%)

69.7

%

70.5

%

(0.8

)

71.1

%

71.7

%

(0.6

)

AFRICA & MIDDLE EAST

REVPAR ($)

110.30

101.63

8.5

%

110.12

102.01

8.0

%

ADR ($)

168.65

176.54

(4.5

%)

169.32

178.29

(5.0

%)

Occupancy (%)

65.4

%

57.6

%

7.8

65.0

%

57.2

%

7.8

ASIA PACIFIC

REVPAR ($)

103.59

96.60

7.2

%

105.33

97.08

8.5

%

ADR ($)

160.78

160.03

0.5

%

161.86

159.10

1.7

%

Occupancy (%)

64.4

%

60.4

%

4.0

65.1

%

61.0

%

4.1

LATIN AMERICA

REVPAR ($)

96.36

90.79

6.1

%

103.09

93.80

9.9

%

ADR ($)

155.51

153.82

1.1

%

171.49

159.45

7.6

%

Occupancy (%)

62.0

%

59.0

%

3.0

60.1

%

58.8

%

1.3

(1)

Includes same store owned, leased, managed, and franchised hotels

(2)

Includes same store owned, leased, and managed hotels

20

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results - Same Store (1)

For the Three Months Ended June 30,

UNAUDITED

WORLDWIDE

NORTH AMERICA

INTERNATIONAL

2012

2011

Variance

2012

2011

Variance

2012

2011

Variance

TOTAL HOTELS

48 Hotels

23 Hotels

25 Hotels

REVPAR ($)

172.34

171.91

0.3

%

176.01

174.06

1.1

%

167.94

169.33

(0.8

%)

ADR ($)

230.75

231.02

(0.1

%)

224.71

222.05

1.2

%

238.82

243.12

(1.8

%)

Occupancy (%)

74.7

%

74.4

%

0.3

78.3

%

78.4

%

(0.1

)

70.3

%

69.6

%

0.7

Total Revenue

398,663

402,189

(0.9

%)

221,573

221,043

0.2

%

177,089

181,146

(2.2

%)

Total Expenses

305,765

315,015

2.9

%

176,071

178,350

1.3

%

129,694

136,665

5.1

%

BRANDED HOTELS

43 Hotels

18 Hotels

25 Hotels

REVPAR ($)

174.84

175.61

(0.4

%)

181.65

181.82

(0.1

%)

167.94

169.33

(0.8

%)

ADR ($)

232.17

233.37

(0.5

%)

226.40

225.07

0.6

%

238.82

243.12

(1.8

%)

Occupancy (%)

75.3

%

75.2

%

0.1

80.2

%

80.8

%

(0.6

)

70.3

%

69.6

%

0.7

Total Revenue

374,329

379,819

(1.4

%)

197,240

198,673

(0.7

%)

177,089

181,146

(2.2

%)

Total Expenses

286,403

296,064

3.3

%

156,709

159,399

1.7

%

129,694

136,665

5.1

%

(1)

Hotel Results exclude five hotels sold and 11 hotels without comparable results during 2011 & 2012

*

Revenues & Expenses above are represented in '000's

21

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended June 30,

UNAUDITED ($ millions)

Worldwide

2012

2011

$ Variance

% Variance

Management Fees:

Base Fees

85

79

6

7.6

%

Incentive Fees

41

32

9

28.1

%

Total Management Fees

126

111

15

13.5

%

Franchise Fees

52

49

3

6.1

%

Total Management & Franchise Fees

178

160

18

11.3

%

Other Management & Franchise Revenues (1)

37

31

6

19.4

%

Total Management & Franchise Revenues

215

191

24

12.6

%

Other

7

10

(3

)

(30.0

%)

Management Fees, Franchise Fees & Other Income

222

201

21

10.4

%

(1)

Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $22 in 2012 and $21 in 2011, resulting from the sales of hotels
subject to long-term management contracts and termination fees.

22

Vacation Ownership & Residential Revenues and Expenses

For the Three Months Ended June 30,

UNAUDITED ($ millions)

2012

2011

$ Variance

% Variance

Originated Sales Revenues (1)  Vacation Ownership Sales

76

80

(4

)

(5.0

%)

Other Sales and Services Revenues (2)

72

70

2

2.9

%

Deferred Revenues  Percentage of Completion

2



2

n/m

Deferred Revenues  Other (3)

(2

)

(6

)

4

66.7

%

Vacation Ownership Sales and Services Revenues

148

144

4

2.8

%

Residential Sales and Services Revenues (4)

168

2

166

n/m

Total Vacation Ownership & Residential Sales and Services Revenues

316

146

170

n/m

Originated Sales Expenses (5)  Vacation Ownership Sales

52

54

2

3.7

%

Other Expenses (6)

52

53

1

1.9

%

Deferred Expenses  Percentage of Completion

2



(2

)

n/m

Deferred Expenses  Other

3

3

0



Vacation Ownership Expenses

109

110

1

0.9

%

Residential Expenses (4)

132

2

(130

)

n/m

Total Vacation Ownership & Residential Expenses

241

112

(129

)

n/m

(1)

Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)

Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)

Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4)

For 2012, includes $167 million of revenues and $132 million expenses associated with the St. Regis Bal Harbour residential project

(5)

Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6)

Includes resort, general and administrative, and other miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only.
Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

23

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide(1) Statistics - Same Store

For the Six Months Ended June 30,

UNAUDITED

SystemwideWorldwide

SystemwideNorth America

SystemwideInternational

2012

2011

Variance

2012

2011

Variance

2012

2011

Variance

TOTAL HOTELS

REVPAR ($)

116.25

110.79

4.9

%

116.58

108.94

7.0

%

115.81

113.30

2.2

%

ADR ($)

169.77

167.80

1.2

%

162.36

157.06

3.4

%

180.99

184.17

(1.7

%)

Occupancy (%)

68.5

%

66.0

%

2.5

71.8

%

69.4

%

2.4

64.0

%

61.5

%

2.5

SHERATON

REVPAR ($)

97.44

92.90

4.9

%

97.20

91.11

6.7

%

97.74

95.13

2.7

%

ADR ($)

146.86

144.61

1.6

%

138.29

134.38

2.9

%

159.04

159.06

(0.0

%)

Occupancy (%)

66.3

%

64.2

%

2.1

70.3

%

67.8

%

2.5

61.5

%

59.8

%

1.7

WESTIN

REVPAR ($)

133.02

125.37

6.1

%

130.63

122.77

6.4

%

139.20

132.10

5.4

%

ADR ($)

183.99

180.27

2.1

%

177.31

171.12

3.6

%

202.58

206.89

(2.1

%)

Occupancy (%)

72.3

%

69.5

%

2.8

73.7

%

71.7

%

2.0

68.7

%

63.9

%

4.8

ST. REGIS/LUXURY COLLECTION

REVPAR ($)

187.05

185.48

0.8

%

227.33

208.38

9.1

%

165.31

173.06

(4.5

%)

ADR ($)

295.90

299.99

(1.4

%)

320.19

304.24

5.2

%

280.13

297.28

(5.8

%)

Occupancy (%)

63.2

%

61.8

%

1.4

71.0

%

68.5

%

2.5

59.0

%

58.2

%

0.8

LE MERIDIEN

REVPAR ($)

128.21

125.47

2.2

%

198.49

188.85

5.1

%

120.46

118.45

1.7

%

ADR ($)

185.51

190.74

(2.7

%)

240.37

229.98

4.5

%

178.12

185.16

(3.8

%)

Occupancy (%)

69.1

%

65.8

%

3.3

82.6

%

82.1

%

0.5

67.6

%

64.0

%

3.6

W

REVPAR ($)

207.36

193.98

6.9

%

197.81

184.13

7.4

%

242.22

229.90

5.4

%

ADR ($)

270.42

261.11

3.6

%

254.92

245.83

3.7

%

330.24

319.11

3.5

%

Occupancy (%)

76.7

%

74.3

%

2.4

77.6

%

74.9

%

2.7

73.3

%

72.0

%

1.3

FOUR POINTS

REVPAR ($)

79.42

75.18

5.6

%

76.10

71.17

6.9

%

84.84

81.71

3.8

%

ADR ($)

117.25

114.61

2.3

%

110.19

106.87

3.1

%

129.41

127.74

1.3

%

Occupancy (%)

67.7

%

65.6

%

2.1

69.1

%

66.6

%

2.5

65.6

%

64.0

%

1.6

ALOFT

REVPAR ($)

74.39

68.64

8.4

%

75.60

69.07

9.5

%

ADR ($)

106.47

106.63

(0.2

%)

107.47

105.22

2.1

%

Occupancy (%)

69.9

%

64.4

%

5.5

70.3

%

65.6

%

4.7

(1)

Includes same store owned, leased, managed, and franchised hotels

24

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results - Same Store

For the Six Months Ended June 30,

UNAUDITED

Systemwide (1)

Company-Operated
(2)

2012

2011

Variance

2012

2011

Variance

TOTAL WORLDWIDE

REVPAR ($)

116.25

110.79

4.9

%

131.08

125.02

4.8

%

ADR ($)

169.77

167.80

1.2

%

191.22

188.75

1.3

%

Occupancy (%)

68.5

%

66.0

%

2.5

68.5

%

66.2

%

2.3

NORTH AMERICA

REVPAR ($)

116.58

108.94

7.0

%

145.54

136.08

7.0

%

ADR ($)

162.36

157.06

3.4

%

196.98

188.99

4.2

%

Occupancy (%)

71.8

%

69.4

%

2.4

73.9

%

72.0

%

1.9

EUROPE

REVPAR ($)

134.81

142.93

(5.7

%)

145.48

153.42

(5.2

%)

ADR ($)

210.73

223.75

(5.8

%)

222.27

235.29

(5.5

%)

Occupancy (%)

64.0

%

63.9

%

0.1

65.4

%

65.2

%

0.2

AFRICA & MIDDLE EAST

REVPAR ($)

117.39

111.15

5.6

%

117.61

111.83

5.2

%

ADR ($)

180.49

186.36

(3.1

%)

181.64

188.27

(3.5

%)

Occupancy (%)

65.0

%

59.6

%

5.4

64.7

%

59.4

%

5.3

ASIA PACIFIC

REVPAR ($)

106.67

100.29

6.4

%

107.80

100.06

7.7

%

ADR ($)

166.60

164.41

1.3

%

167.75

163.40

2.7

%

Occupancy (%)

64.0

%

61.0

%

3.0

64.3

%

61.2

%

3.1

LATIN AMERICA

REVPAR ($)

101.71

92.15

10.4

%

110.23

96.71

14.0

%

ADR ($)

163.11

153.78

6.1

%

175.05

160.60

9.0

%

Occupancy (%)

62.4

%

59.9

%

2.5

63.0

%

60.2

%

2.8

(1)

Includes same store owned, leased, managed, and franchised hotels

(2)

Includes same store owned, leased, and managed hotels

25

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results - Same Store (1)

For the Six Months Ended June 30,

UNAUDITED

WORLDWIDE

NORTH AMERICA

INTERNATIONAL

2012

2011

Variance

2012

2011

Variance

2012

2011

Variance

TOTAL HOTELS

47 Hotels

23 Hotels

24 Hotels

REVPAR ($)

159.67

156.06

2.3

%

167.58

163.45

2.5

%

149.83

146.89

2.0

%

ADR ($)

222.01

218.97

1.4

%

223.37

218.26

2.3

%

220.15

219.97

0.1

%

Occupancy (%)

71.9

%

71.3

%

0.6

75.0

%

74.9

%

0.1

68.1

%

66.8

%

1.3

Total Revenue

739,495

728,289

1.5

%

429,370

420,960

2.0

%

310,124

307,329

0.9

%

Total Expenses

589,773

592,267

0.4

%

351,072

349,381

(0.5

%)

238,701

242,886

1.7

%

BRANDED HOTELS

42 Hotels

18 Hotels

24 Hotels

REVPAR ($)

162.82

159.87

1.8

%

175.20

172.27

1.7

%

149.83

146.89

2.0

%

ADR ($)

224.00

220.95

1.4

%

227.24

221.76

2.5

%

220.15

219.97

0.1

%

Occupancy (%)

72.7

%

72.4

%

0.3

77.1

%

77.7

%

(0.6

)

68.1

%

66.8

%

1.3

Total Revenue

695,598

687,716

1.1

%

385,473

380,387

1.3

%

310,124

307,329

0.9

%

Total Expenses

551,333

554,543

0.6

%

312,632

311,657

(0.3

%)

238,701

242,886

1.7

%

(1)

Hotel Results exclude five hotels sold and 12 hotels without comparable results during 2011 & 2012

*

Revenues & Expenses above are represented in '000's

26

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Six Months Ended June 30,

UNAUDITED ($ millions)

Worldwide

2012

2011

$ Variance

% Variance

Management Fees:

Base Fees

161

146

15

10.3

%

Incentive Fees

80

62

18

29.0

%

Total Management Fees

241

208

33

15.9

%

Franchise Fees

97

92

5

5.4

%

Total Management & Franchise Fees

338

300

38

12.7

%

Other Management & Franchise Revenues (1)

73

63

10

15.9

%

Total Management & Franchise Revenues

411

363

48

13.2

%

Other

12

15

(3

)

(20.0

%)

Management Fees, Franchise Fees & Other Income

423

378

45

11.9

%

(1)

Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $43 in 2012 and $42 in 2011, resulting from the sales of hotels
subject to long-term management contracts and termination fees.

27

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Six Months Ended June 30,

UNAUDITED ($ millions)

2012

2011

$ Variance

% Variance

Originated Sales Revenues (1)  Vacation Ownership Sales

159

162

(3

)

(1.9

%)

Other Sales and Services Revenues (2)

142

136

6

4.4

%

Deferred Revenues  Percentage of Completion

3



3

n/m

Deferred Revenues  Other (3)

(4

)

(7

)

3

42.9

%

Vacation Ownership Sales and Services Revenues

300

291

9

3.1

%

Residential Sales and Services Revenues (4)

530

8

522

n/m

Total Vacation Ownership & Residential Sales and Services Revenues

830

299

531

n/m

Originated Sales Expenses (5)  Vacation Ownership Sales

111

112

1

0.9

%

Other Expenses (6)

105

101

(4

)

(4.0

%)

Deferred Expenses  Percentage of Completion

2



(2

)

n/m

Deferred Expenses  Other

6

6





Vacation Ownership Expenses

224

219

(5

)

(2.3

%)

Residential Expenses (4)

410

4

(406

)

n/m

Total Vacation Ownership & Residential Expenses

634

223

(411

)

n/m

(1)

Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)

Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)

Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4)

For 2012, includes $523 million of revenues and $410 million expenses associated with the St. Regis Bal Harbour residential project

(5)

Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6)

Includes resort, general and administrative, and other miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only.
Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

28

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Hotels without Comparable Results & Other Selected Items

As of June 30, 2012

UNAUDITED ($ millions)

Properties without comparable results in 2012 and 2011:

Property

Location

The Westin Peachtree Plaza

Atlanta, GA

St. Regis Bal Harbour

Bal Harbour, FL

Sheraton Kauai Resort

Koloa, HI

Grand HotelFlorence

Florence, Italy

W LondonLeicester Square

London, England

Clarion Hotel

Millbrae, CA

W New OrleansFrench Quarter

New Orleans, LA

Sheraton Suites Philadelphia Airport

Philadelphia, PA

Hotel Maria Cristina

San Sebastian, Spain

Hotel Alfonso XIII

Seville, Spain

Four Points Tucson

Tucson, AZ

Hotel Gritti Palace

Venice, Italy

Properties sold or closed in 2012 and 2011:

Property

Location

Atlanta Perimeter

Atlanta, GA

Boston Park Plaza

Boston, MA

W City Center

Chicago, IL

The Westin Gaslamp Quarter

San Diego, CA

Hotel Bristol

Vienna, Austria

Revenues and Expenses Associated with Assets Sold or Closed in 2012 and 2011: (1)